TMI Blog1996 (12) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... was made upon the appellants was under Tariff Item 68 and it proceeded upon the basis that there was a process of manufacture of coloured polystyrene from uncoloured polystyrene. Having come to a conclusion against the Revenue on these counts, the appropriate order for the Tribunal to have passed was to have set aside the demand and left it open to the Revenue to proceed against the appellants, as permissible under the law. The appellants would then have had the opportunity of meeting the precise case made out by the Revenue. Assessee appeal allowed. - 3431-34 of 1987 - - - Dated:- 19-12-1996 - S.P. Bharucha and S.C. Sen, JJ. [Judgment]. - In Civil Appeal Nos. 1127-28 of 1986 : The appellants manufacture polystyrene. It is of a na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the appellants' contention that polystyrene, which was a polymer, would continue after colouring to fall under Tariff Item 15A(1)(ii) and not under Tariff Item 68. He stated that the appellants were paying Excise Duty on the uncoloured polystyrene which was cleared from their factory. The dispute was only in regard to the uncoloured polystyrene which was captively consumed by the appellants in their colouring plant within the factory. The question now was whether excise duty should be chargeable at the coloured stage when it was cleard from the factory after colouring or at the uncoloured stage, as it was captively consumed in the factory in their colouring plant. The duty in such a case was chargeable on the value of the coloured poly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Item 68, the demand ought to have been quashed. He submitted that the order of the Tribunal proceeded upon the basis that there was a process of manufacture of coloured polystyrene from uncoloured polystyrene, which was contrary to what the Tribunal had found. 5.The order of the Tribunal was supported by learned Counsel for the Revenue. It was submitted that it was the appellants' own case that the coloured polystyrene was covered by Tariff Item 15A(1)(ii) and, therefore, the Tribunal was right in holding that the appellants should pay excise duty as at the coloured stage, but limiting the quantum thereof to that which would have been paid had the demand under Tariff Item 68 been sustained. 6.While we appreciate the Tribunal's desire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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